King Salman allocates SR100 billion to sovereign fund

Custodian of the Two Holy Mosques King Salman speaks during the inauguration of development projects at Al-Aziziah Palace in Alkhobar on Monday. (SPA file photo)
Updated 01 December 2016

King Salman allocates SR100 billion to sovereign fund

JEDDAH: Custodian of the Two Holy Mosques King Salman has issued a directive to allocate SR100 billion from Saudi Arabia’s reserves to the Public Investment Fund (PIF).
 
The move to bolster the Kingdom’s sovereign wealth fund was made after a recommendation from the Council of Economic Affairs and Development, according to state news agency SPA.
 
It is intended to diversify the investments of the fund and improve the revenues from its portfolio, it was reported.
The fund said it will focus on opportunities in the domestic and international markets, although no timeframes were given.
 
PIF is expected to focus on “some expected high yields opportunities in the local market that supports the private sector investments and promote economic growth”. 
 
The move to bolster PIF is in line with Saudi Arabia’s ambitious Vision 2030 reform plan, SPA added.
Under economic reforms announced early this year, the government said it aims to expand the PIF, founded in 1971 to finance development projects in the country, from $160 billion to about $2 trillion by transferring assets such as ownership of Saudi Aramco.
 
In June, the PIF bought a stake in US ride-hailing firm Uber for $3.5 billion.
On Monday, the fund announced plans to buy a major stake in Adeptio, the Gulf-based investment firm which controls Kuwait Food Co. (Americana).
 


Conflict-hit Libya to restart oil operations but with low output

Updated 10 July 2020

Conflict-hit Libya to restart oil operations but with low output

  • There is significant damage to the reservoirs and infrastructure
  • A first cargo of 650,000 barrels will be shipped by the Kriti Bastion Aframax tanker

TUNIS: Libya’s National Oil Corporation (NOC) lifted force majeure on all oil exports on Friday as a first tanker loaded at Es Sider after a half-year blockade by eastern forces, but said technical problems caused by the shutdown would keep output low.
“The increase in production will take a long time due to the significant damage to reservoirs and infrastructure caused by the illegal blockade imposed on January 17,” NOC said in a statement.
A first cargo of 650,000 barrels will be shipped by the Kriti Bastion Aframax tanker, chartered by Vitol, which two sources at Es Sider port said had docked and started loading on Friday morning.
The blockade, which was imposed by forces in eastern Libya loyal to Khalifa Haftar’s Libyan National Army (LNA), has cost the country $6.5 billion in lost export revenue, NOC said.
“Our infrastructure has suffered lasting damage, and our focus now must be on maintenance and securing a budget for the work to be done,” NOC chairman Mustafa Sanalla said in the statement.
Control over Libya’s oil infrastructure, the richest prize for competing forces in the country, and access to revenues, has become an ever-more significant factor in the civil war.
The internationally recognized Government of National Accord, supported by Turkey, has recently pushed back the LNA, backed by the United Arab Emirates, Russia and Egypt, from the environs of Tripoli and pushed toward Sirte, near the main oil terminals.